Disposable Income Per Capita Grows At Weakest Rate Since 2014

Tyler Durden's picture

For the 3rd month in a row, annual US spending growth has outpaced annual income growth (+4.2% spending vs +3.5% income).

 

However, both spending and income growth MoM disappointed (with incomes unchanged MoM - the weakest since Feb 2016).

 

Combine these two and the savings rate in November plunged to its lowest since March 2015.

 

Finally we note that Disposable Real Personal Income per Capita dropped from 39,292 to 39,247, increasing just 1.5% YoY - the weakest growth since 2014.

 

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jamesmmu's picture
Earning a Living Wage Will Not be Achieved by Raising the Minimum Wage

http://investmentwatchblog.com/earning-a-living-wage-will-not-be-achieve...

Paul Kersey's picture

With over 75% of Americans in debt serf mode, living from paycheck to paycheck, it's hard to believe that there can ever be any disposable income growth in the U.S. However, those 20 richest Americans, who have more wealth than 50% of the rest of the country, will continue to see their disposable incomes grow as long as their financial engineering tactics allow them to extract more from the rest of the broke-dick population. Parasites rule.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Paul Kersey Dec 22, 2016 11:51 AM

Is it Trump's fault yet???

Paul Kersey's picture

It's our fault for allowing it all to happen while watching Dancing With the Stars, Marvel Comics-based movies, ingesting psychotropic drugs, growing fatter on fast food or grazing at the Country Buffet, and, of course, getting our nails done and our hair colored. We have become an antibiotic-laced Chicken Nugget Nation.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Paul Kersey Dec 22, 2016 1:11 PM

Personally, I don't care if people do all of those things, plus more. What I do care about is when Central Planning points guns at me, telling me that I now have to pay for the people who do those things. When Central Planning points guns at me and tells me that that man over there is now a woman - if you don't agree, go to jail. Get Central Planning and their guns out of my face.

DaveyJones's picture

there's an inverse relationship between "disposable income" and income that resembles other disposables

DaveyJones's picture

there's an inverse relationship between "disposable income" and income that resembles other disposables

More Ammo's picture
Disposable Income Per Capita Grows

 

What is "Disposable Income"????

and

How in the hell is a negative value "GROWS"

dimwitted economist's picture

This is a Very HARD to Understand Topic...

VERY COMPLICATED.

People are Fucking BROKE

and so...

No Fucking $ to SPEND!!!!!

WOW.

VD's picture

even at ATH's? ah, bc these are NOT YOUR ATH's, they're the 1%ers ATHs..... debt-slaves, you owe more than you'll ever "save" at the very banks you owe to.

NoWayJose's picture

Economists are too stupid to recognize that people save less on November because they go Christmas shopping - and save even less when gasoline prices jump 30 cents!

Rainman's picture

... and save even less when the ObamaScare premium tax is hiked 25% !

CoCosAB's picture

More GREAT NEWS for 20,000.00 mark of DJIA!

cowdiddly's picture

What is this Disposable Income he speaks of?

Is that like the zinc pennies you get back in change and throw at a bird hoping to hit it for something to eat?

robertocarlos's picture

Savings includes paying back loans so the country was never saving but people were saving and if that ended then the economy is finished.

HalEPeno's picture

It is one of the charming little side benefits of our tax system that companies often do layoffs and RIF's at year end (around the joyous holiday season) in order to book the tax benefits associated with the bulge in expenses associated with said firings.  Among other inputs, this is just one more reason why an economy operating at the margins will see a drop in both spending and savings.  Less money for either one.

refill6times's picture

Also, maybe people aren't saving money in banks.

My savings have grown, just not in that digital realm.

refill6times's picture

Your fault, not mine.

Good luck in the new year, nothing holding you back.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) FreeShitter Dec 22, 2016 11:55 AM

Crack prices be skyrocketin. Da rayyysis man still be opres'n mak'n dem pay dohs kind uh prices.

Bank_sters's picture

Fortunately debt expansion is exponential-  pg. 1 the Paul Krugman school of economics.

Cassandra.Hermes's picture

Lol, look at the graphic, everytime it went down we have Republican in the White House, how ironic right!

https://fred.stlouisfed.org/series/A229RX0A048NBEA

monad's picture

You can't fire me! I gots EBD cart bitches!

I am Jobe's picture

The entire US Economy is Disposable. Dump Wife, Husband, Relatioships  with others. Then all of them talk about love, feelings, and emotions. Americkas are getting fucked up 

itstippy's picture

Unless you already have many hundreds of thousands of dollars' worth of diverse assets set aside for your retirement years, you don't have ANY "disposable" income.  If you dispose of that extra cash now you will really wish you had it back later.  Be sure to have an ample supply of assets "off the books" too.  If the government knows you have assets they will tax them, take them, or deduct their value from your future SS benefits.  

A wise old guy told me years ago, "Son, it's a jungle out there but sometimes you run into some coconuts.  When you do you should eat a few, share a few, and stash the rest in a safe place."

 

NoWayJose's picture

You nailed it - work too many hours at your Walmart greeter job and they subtract from your SS check. Same thing if you earn too much interest on your savings -- but fortunately the Fed took care of that so most seniors don't have this problem!

And there is talk of a 'wealth tax'. I do not believe that will happen (because people will hide their wealth) - but I can easily see it happen where they means test all government benefits such that you have to prove that you are 'poor' enough!

Cassandra.Hermes's picture

A wise old guy once told me "Better an egg today than a hen tomorrow"

"

NoWayJose's picture

Want to know why bank stocks have done so well in the past month - I printed the rates sheet at my bank prior to the Fed hike, and checked it again today. No change for savings or CD rates - the only thing that went up was the interest rate they charge for loans.

TrustbutVerify's picture

Disposable income per capita would grow if Americans bought American made goods and not phony American brands made in foreign factories. Americans claim they care about unemployment and the average working person. Their personal spending habits indicate otherwise. The average working person should make efforts to help himself and herself. Government policy is definitely not without blame - but the average citizen, discount buying their way out of a job, deserves blame, too.

looseal's picture

True, but it's nearly impossible to buy some products made in the USA.  Women's clothing and shoes for example.  Children's toys.  And to confuse the matter some things are partially made in various places.  Wine could be made in France but bottled in the U.S.  

Governments work for large corporations.  If politicians wanted a strong middle-class, they would have negotiated with other governments to slowly raise their wages and standard of living so the vacuuming out of manufacturing jobs from the US would not have occurred.

silverer's picture

Ross Perot was right.

flyingcaveman's picture

Funny when you think about 'disposing' your income.  Think about it!  Economist expect you to litterally waste a portion of your income.